If a Dutch company exports its goods to the UK, how would it use a futures contract

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If a Dutch company exports its goods to the UK, how would it use a futures contract on sterling to hedge its exchange rate risk? Would it buy or sell sterling futures? Does the way the exchange rate is quoted in the futures contract matter?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 22, 2024 03:02 AM

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If a Dutch company exports its goods to the UK, how would it use a futures contract

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If a Dutch company exports its goods to the UK and wants to hedge its exchange rate risk using a futures contract on sterling it needs to consider the ...View the full answer

Corporate Finance

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